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HomeMy WebLinkAbout18-531 SaggiomoPHONE: 717- 783 -1610 TOLL FREE: 1-800- 932 -0936 ADVICE OF COUNSEL April 30, 2018 To the Requester: Ms. Christina Saggiomo Dear Ms. Saggiomo: FACSIMILE: 717- 787 -0806 WEBSITE: www.ethics.pa.00v 18 -531 This responds to your letters dated March 19, 2018, and March 26, 2018, by which you re nested an advisory from the Pennsylvania State Ethics Commission ( "Commission's. Issue: Whether, in your former capacity as a Project Director for the City of PFi delphia ( "City ") Office of the Chief Administrative Officer, you would be considered a "public official" or "public employee" subject to the Public Official and Employee Ethics Act C" thics Act"), 65 Pa.C.S. § 1101 et seq., and the Regulations of the State Ethics Commission, 51 Pa. Code § 11.1 et sse ., such that the restrictions of Section 1103(g) of the Ethics Act would now be applicable to you. Facts: You request an advisory from the Commission based upon submitted afi cfslhat may be fairly summarized as follows. Until March 2, 2018, you were employed as a Project Director for the City Office of the Chief Administrative Officer. You have submitted a copy of a position description { "Position Description ") for your former position with the City Office of the Chief Administrative Officer, which document is incorporated herein by reference. You state that although the Position Description lists the title of your former position as Assistant Chief Administrative Officer, the Position Description provides all of the details for your former position as a Project Director. The Position Description provides, in pertinent part, as follows: Position Summary The Assistant CAO will work as part of a small team focused on managing projects to transform and modernize government services. This position will be primarily responsible for supporting transformation and process improvement projects with research, analysis and presentations. These projects touch departments throughout the City and focus on measurable gains to create more efficient and effective processes. Sa iomo, 18 -531 pr�iT�, 2018 Page 2 Example projects include: Modernizing the City's purchasing functions through process improvement, technological updates and legislative change; revamping of the Capital Projects process to increase speed of completion and lower costs; implement revised City employee space standards potentially saving significantly on leased costs and creating more efficient use of space. Duties and Responsibilities — What will I be doing? • Problem solving — understanding current challenges and possible solutions • Data analysis — using simple excel skills to both understand the problem and assess effectiveness of proposed solution • Communication — summarize projects /projects/ solutions in a way that is clear to many different audiences throughout the City (usually in the form of a PowerPoint deck) • Project management -- provide support to senior staff in implementing projects that align with top Administration priorities • Collaboration — work closely with CAO staff, other teams and departments throughout the City, including the Managing Director's Office and Finance Department Financial Analysis — conduct financial analysis such as p resent value calculations, return on investment, and cost benefit analysis for departments reporting to the Office of the CAO; assist with financial requests during the budget process and in other times throughout the year Position Description, at 1 -2. You state that in your former position as a Project Director for the City Office of the Chief Administrative Officer, your responsibilities included managing various modernization projects focused on analyzing and transforming administrative functions of the City government. You state that you also led cross - functional projects focused on process improvement, technological updates, and legislative change. Your former position with the City was not an elected or appointed position. You have submitted a copy of an organizational chart ( "Organizational Chart") for the City, which document is incorporated herein by reference. It is noted that per the Organizational Chart and the Position Description, the Chief Administrative Of has authority over the following City Departments, Offices, Bureaus, and Units: (1) Procurement Department; l( Department of Records; (3) Office of Fleet Management; (4) Human Resources and alent Unit; (5) Office of Administrative Review; 6) Bureau of Administrative Adjudication; (7) Office of Innovation and Technology; (8 Office of Performance Management; (9) Contracts Legislation Unit; (10) Departmen of Public Property; and (11) Office of Open Data and Digital Transformation. Spr�018 -531 Page 3 Based upon the above submitted facts, you pose the following questions: (1) Whether, in your former capacity as a Project Director for the City Office of the Chief Administrative Officer, you would be considered a "public official' or "public employee" as those terms are defined in the Ethics Act, such that upon termination of service with the City, you became a "former public official or public employee" subject to the restrictions of Section 1103(g) of Ethics Act; and (2) If the restrictions of Section 1103(g) of the Ethics Act would now be applicable to you, what would be considered your former governmental body. Discussion: It is initial) noted that pursuant to Sections 1107(10) and 1 107('11) of the Ethics Act, 65 Pa.C.S. y§§ 1107(10), (11), advisories are issued to the requester based upon the facts that the requester has submitted. In issuing the advisory based upon the facts that the requester has submitted, the Commission does not engage in an independent investigation of the facts, nor does it speculate as to facts that have not been submitted. It is the burden of the requester to truthfully disclose all of the material facts relevant to the inquiry. 65 Pa.C.S. §§ 110700), (11). An advisory only affords a defense to the extent the requester has truthfully disclosed all of the material facts. The Ethics Act defines the term "public official' as follows: § 1102. Definitions "Public official." Any person elected by the public or elected or appointed by a governmental body or an appointed official in the executive, legislative or judicial branch of this Commonwealth or any political subdivision thereof, provided that it shall not include members of advisory boards that have no authority to expend public funds other than reimbursement for personal expense or to otherwise exercise the power of the State or any political subdivision thereof. 65 Pa.C.S. § 1102. The Ethics Act defines the term "public employee" as follows: § 1102. Definitions "Public employee." Any individual employed by the Commonwealth or a political subdivision who is responsible for taking or recommending official action of a nonministerial nature with regard to: (1) contracting or procurement; (2) administering or monitoring grants or subsidies; (3) planning or zoning; (4) inspecting, licensing, regulating or auditing any person; or Spa giomo, 18531 April 30, 2018 Page 4 (5) any other activity where the official action has an economic impact of greater than a de minimis nature on the interests of any person. The term shall not include individuals who are employed by this Commonwealth or any political subdivision thereof in teaching as distinguished from administrative duties. 65 Pa.C.S. § 1102. The Regulations of the State Ethics Commission similarly define the term "public employee" and set forth the following additional criteria: (ii) The following criteria will be used, in part, to determine whether an individual is within the definition of "public employe ": (A) The individual normally performs his responsibility in the field without onsite supervision. (B) The individual is the immediate supervisor of a person who normally performs his responsibility in the field without onsite supervision. (C) The individual is the supervisor of a highest level field office. (D) The individual has the authority to make final decisions. (E) The individual has the authority to forward or stop recommendations from being sent to the person or body with the authority to make final decisions. (F) The individual prepares or supervises the preparation of final recommendations. (G) The individual makes final technical recommen- dations. (H) The individual's recommendations or actions are an inherent and recurring part of his position. (1) The individual's recommendations or actions affect organizations other than his own organization. (iii) The term does not include individuals who are employed by the Commonwealth or a political subdivision of the Commonwealth in teaching as distinguished from administrative duties. (iv) Persons in the following positions are generally considered public employes: (A) Executive and special directors or assistants reporting directly to the agency head or governing body. Spr018 -531 Page 5 (B) Commonwealth bureau directors, division chiefs or heads of equivalent organization elements and other governmental body department heads. (C) Staff attorneys engaged in representing the department, agency or other governmental bodies. (D) Engineers, managers and secretary-treasurers acting as managers, police chiefs, chief clerks, chief purchasing agents, grant and contract managers, administrative officers, housing and building inspectors, investigators, auditors, sewer enforcement officers and zoning officers in all governmental bodies. (E) Court administrators, assistants for fiscal affairs and deputies for the minor judiciary. (F) School superintendents, assistant superintendents, school business managers and principals. (G) Persons who report directly to heads of executive, legislative and independent agencies, boards and commissions except clerical personnel. (v) Persons in the following positions are generally not considered public employes: (A) City clerks, other clerical staff, road masters, secretaries, police officers, maintenance workers, construction workers, equipment operators and recreation directors. (B) Law clerks, court criers, court reporters, probation officers, security guards and writ servers. (C) School teachers and clerks of the schools. 51 Pa. Code § 11.1. The following terms are relevant to your inquiry and are defined in the Ethics Act as follows: § 1102. Definitions "Ministerial action." An action that a person performs in a prescribed manner in obedience to the mandate of legal authority, without regard to or the exercise of the persons own judgment as to the desirability of the action being taken. "Nonministerial actions." An action in which the person exercises his own judgment as to the desirability of the action taken. 65 Pa.C.S. § 1102. Sa giomo, 18 -531 April it 30, 2018 Page 6 Status as a "public employee" subject to the Ethics Act is determined by an objective test. The objective test applies t -he Ethics Act's definition of the term "public employee" and the related regulatory criteria to the powers and duties of the position itself. Typically, the powers and duties of the position are established by objective sources that define the position, such as the job description, job classification specifications, and organizational chart. The objective test considers what an individual has the authority to do in a given position based upon these objective sources, rather than the variable functions that the individual may actually perform in the position. See, Phillips v. State Ethics Commission, 470 A.2d 659 (Pa. Cmwlth. 1984); Eiben, Opinion 04-002; Shienvold, pinion 4- T ; Shearer, Opinion 03 -011. The Commonwealth Court of Pennsy v�ania has specifically consic Bred and approved this Commission's objective test and has directed that coverage under the Ethics Act be construed broadly and that exclusions under the Ethics Act be construed narrowly. See, Qua lia v. State Ethics Commission, 986 A.2d 974 (Pa. Cmwlth. 2010 ), amended X2010 a. ommw. LE $(F'a. Cmwlth. January 5, 010), allocatur denied, 607 Pa. 708, 4 A.3d 1056 (2010); Phillips, supra. The first portion of the statutory definition of "public employee" includes individuals with authority to take or recommend official action of a nonministerial nature. 65 Pa.C.S. § 1102. Likewise, the regulatory criteria for determining tatus as a public employee, as set forth in 51 Pa. Code § 1'1.1( "public employee ")(ii), include not only individuals with authority to make final decisions but also individuals with authority to forward or stop recommendations from being sent to final decision - makers; individuals who prepare or supervise the preparation of final recommendations; individuals who make final technical recommendations; and individuals whose recommendations are an inherent and recurring part of their positions. See, pg., Reese /Gilliland, Opinion 05- 005. With regard to your status in your former capacity as a Project Director for the City Office of the Chief Administrative Officer, you are advised as follows. In applying the Ethics Act's definition of the term "public official," the first portion of the definition provides that a public official is a person who: (1) is elected by the public; (2) is elected or appointed by a governmental body; or (3) is an appointed official in the executive, legislative, or judicial branch of the Commonwealth or a political subdivision of the Commonwealth. Muscalus, Opinion 02 -007. When the first portion of the definition is met, status as a publics of icial subject to the Ethics Act is established, unless the exclusion for members of purely advisory boards is applicable. Eiben, supra. Based upon the submitted facts, in your former capacity as a Project Director for the City Office of the Chief Administrative Officer, you would not fall within any of the three categories above. Accordingly, you are advised that in your aforesaid former capacity, you would not be considered a "public official" subject to the Ethics Act. In applying the Ethics Act's definition of the term "public employee," the necessary conclusion is that in your former capacity as a Project Director for the City Office of the Chief Administrative Officer, you would be considered a "public employee' subject to the Ethics Act and the Regulations of the State Ethics Commission. It is clear that as a Project Director for the City Office of the Chief Administrative Officer, you had the ability to take or recommend official action of a nonministerial nature with respect to subparaggraph (5) within the definition of "public employee" as set forth in the Ethics Act, 65 Pa.C.S. § 1102. Specifically, your authority to: (1) manage projects to modernize the City's purchasing functions through process improvement, technological updates and legislative change; (2) manage projects to revamp the Capital Projects process to increase speed of completion and lower costs; (3) manage projects to implement revised City employee space standards, potentially saving SaWiomo, 18 -531 April 30 ,2018 Page 7 significantly on leased costs and creating more efficient use of space; (4) conduct financial analysis such as present value calculations, return on investment, and cost benefit analysis for departments reporting to the City Office of the Chief Administrative Officer; and (5) assist with financial requests during the budget process and in other times throughout the year, would be sufficient to establish your status as a "public employee" subject to the Ethics Act. The foregoing duties /authority would also meet the criteria for determining your status as a public employee under the Regulations of the State Ethics Commission, specifically at 51 Pa. Code § 11.1, "public employee," subparagraphs (i) and (ii). Consequently, upon termination of your employment with the City, you became a "former public employee" subject to Section 1103(g) of the Ethics Act. While Section 1103(8) does not prohibit a former public official /public employee from accepting a position of employment, it does restrict the former public official /public employee with regard to "representing" a "person" before "the governmental body with which he has been associated ": § 1103. Restricted activities (g) Former official or employee. - -No former public official or public employee shall represent a er�son, with promised or actual compensation, on any matter before the governmental body with which he has been associated for one year after he leaves that body. 65 Pa.C.S. § 1103(g) (Emphasis added). The terms "represent," "person," "governmental body," and "governmental body with which a public official or public employee is or has been associated" are specifically defined in the Ethics Act as follows: § 1102. Definitions Represent. To act on behalf of any other person in any activity which includes, but is not limited to, the following: personal appearances, negotiations, lobbying and submitting bid or contract proposals which are signed by or contain the name of a former public official or public employee. "Person." A business, governmental body, individual, corporation, union, association, firm, partnership, committee, club or other organization or group of persons. "Governmental body." Any department, authority, commission, committee, council, board, bureau, division, service, office, officer, administration, legislative body or other establishment in the executive, legislative or judicial branch of a state, a nation or a political subdivision thereof or any agency performing a governmental function. "Governmental body with which a public official or public emplo ee is or has been associated." The governmental body within State government or a political subdivision by which the public official or employee is or has been employed or to which the public official or employee is Sa gEomo, 18 -531 p-n 30; 2018 Page 8 or has been appointed or elected and subdivisions and offices within that governmental body. 65 Pa.C.S. § 1102. The term "Person" is very broadly defined. It includes, inter alia, corporations and other businesses. It also includes the former public officiavp—ub iemployee himself, Confidential Opinion, 93005, as well as a new governmental employer. Ledebur, pinion 95-007. The term "represent" is also broadly defined to prohibit acting on behalf of any person in any activity. Examples of prohibited representation include: (1) personal appearances before the former governmental body or bodies; (2) attempts to influence; (3) submission of bid or contract proposals which are signed by or contain the name of the former public official/public employee; (4) participating in any matters before the former governmental body as to acting on behalf of a person; and (5) lobbying. Popovich, Opinion 89 -005. Listing one's name as the person who will provide technical assistance on a proposal, document, or bid, if submitted to or reviewed by the former governmental body, constitutes an attempt to influence the former governmental body. Section 1103(g) also generally prohibits the inclusion of the name of a former public official/ public employee on invoices submitted by his new employer to the former governmental body, even if the invoices pertain to a contract that existed prior to termination of service with such governmental body. SShaa , Opinion 91 -012. However, if such a pre- existing contract does not involve the unit where a former public employee worked, the name of the former public employee may appear on routine invoices if required by the regulations of the agency to which the billing is being submitted. AbramsANebster, Opinion 95 -011. A former public official/public employee may assist in the preparation of any documents presented to his former governmental body. However, the former public official/public employee may not be identified on documents submitted to the former governmental body. The former public official/public employee may also counsel any person regarding that person's appearance before his former governmental body. Once again, however, the activity in this respect should not be revealed to the former governmental body. The Ethics Act would not prohibit or preclude making general informational inquiries to the former governmental body to secure information which is available to the general public, but this must not be done in an effort to indirectly influence the former governmental body or to otherwise make known to that body the representation of, or work for, the new employer. Section 1103(g) only restricts the former public official/public employee with regard to representation before his former governmental body. The former public officiallpublic employee is not restricted as to representation before other agencies or entities. However, the "governmental body with which a public official/public employee is or has been associated" is not limited to the particular subdivision of the agency or other governmental body where the public official/public employee had influence or control but extends to the entire body. See, Legislative Journal of House, 1989 Session, No. 15 at 290, 291; Sirolli, Opinion 90 -006; Sharp, Opinion 90-OM-R. Based upon the submitted facts, the governmental body with which you are deemed to have been associated upon termination of your employment with the City, hereinafter collectively referred to as your "former governmental body," consists of the City Office of the Chief Administrative Officer in its entirety and all City Departments, Offices, Bureaus, Units, and the like over which the Chief Administrative Officer has authority pursuant to the City Charter or otherwise, including but not limited to the Saggiomo, 18 -531 pHnFaO, 2018 Page 9 following: (1) Procurement Department; (2) Department of Records; (3) Office of Fleet Management; (4) Human Resources and Talent Unit; (5) Office of Administrative Review; (6) Bureau of Administrative Adjudication; 7) Office of Innovation and Technology; (8) Office of Performance Management; (9) Contracts Legislation Unit; (10) Department of Public Property; and (11) Office of Open Data and Digital Transformation. Cf., Abernathy, Advice 12� -55588 Therefore, for the first year following termination of your employment with the City, Section 1103(g) of the Ethics Act would apply and restrict "representation" of a "person" before your former governmental body as delineated above. Based upon the facts that have been submitted, this Advice has addressed the applicability of Section 1103(8) only. It is expressly assumed that there has been no use of authority of office or employment, or confidential information received by being n the public position, for a private pecuniary benefit as prohibited by Section 1103_(a) of the Ethics Act. Further, you are advised that Sections 1103(b) and 1103(c) of the Ethics Act provide in part that no person shall offer or give to a public official /public employee and no public official /public employee shall solicit or accept anything of monetary value based upon the understanding that the vote, official action, or Judgment of the public official/public employee would be influenced thereby. Reference is made to these provisions of the law not to imply that there has been or will be any transgression thereof but merely to provide a complete response to the question presented. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act; the applicability of any other statute, code, ordinance, regulation or other code of conduct other than the Ethics Act has not been considered in that they do not involve an interpretation of the Ethics Act. Conclusion. In the former capacity as a Project Director for the City of Philadelphia ( "City ") Office of the Chief Administrative Officer, you would be considered a "public employee" —and not a "public official " — subject to the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et se q., and the Regulations of the State Ethics Commission, 51 Pa. Code § 11.1 et 0q, pon termination of your employment with the City, you became a "former public employee" subject to Section 11 03(g) of the Ethics Act. Based upon the submitted facts, the governmental body with which you are deemed to have been associated upon termination of your employment with the City, hereinafter collectively referred to as your "former governmental body," consists of the City Office of the Chief Administrative Officer in its entirety and all City Departments, Offices, Bureaus, Units, and the like over which the Chief Administrative Officer has authority pursuant to the City Charter or otherwise, including but not limited to the following: (1) Procurement Department; (2) Department of Records; (3) Office of Fleet Management; (4) Human Resources and Talent Unit; (5) Office of Administrative Review; (6) Bureau of Administrative Adjudication; 7) Office of Innovation and Technology; (8) Office of Performance Management; (9) Contracts Legislation Unit; (10) Department of Public Property; and (11) Office of Open Data and Digital Transformation. For the first year following termination of your employment with the City, Section 1103(g) of the Ethics Act would apply and restrict "representation" of a "person" before your former governmental body as delineated above. The restrictions as to representation outlined above must be followed. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Pursuant to Section 1107(11) of the Ethics Act, an Advice is a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding, provided the requester has disclosed Saiomo, 18 -531 April 30, 2018 Page 10 truthfully all the material facts and committed the acts complained of in reliance on the Advice given. This letter is a public record and will be made available as such. Finally, if you disagree with this Advice or if you have any reason to challenge same, you may appeal the Advice to the full Commission. A personal appearance before the Commission will be scheduled and a forma! Opinion will be issued by the Commission. Any such appeal must be in writingg and must be actually received at the Commission within thirty (30) days of the date of this Advice ursuant to 51 Pa. Code § f3.2(h). The appeal may be received at the Commission by hand delivery, United States mall, delivery service, or by FAX transmission (717 - 787 - 0806). Failure to file such an appeal at the Commission within thirty (30) days may result in the dismissal of the appeal. Sincerely, Robin M. Hittie Chief Counsel